Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Sarepta Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. The US$7.8b market-cap company posted a loss in its most recent financial year of US$703m and a latest trailing-twelve-month loss of US$691m shrinking the gap between loss and breakeven. As path to profitability is the topic on Sarepta Therapeutics' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

Check out our latest analysis for Sarepta Therapeutics

Sarepta Therapeutics is bordering on breakeven, according to the 14 American Biotechs analysts. They expect the company to post a final loss in 2023, before turning a profit of US$311m in 2024. Therefore, the company is expected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 66%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won't go into details of Sarepta Therapeutics' upcoming projects, though, bear in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there's one issue worth mentioning. Sarepta Therapeutics currently has a debt-to-equity ratio of 162%. Typically, debt shouldn't exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Sarepta Therapeutics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Sarepta Therapeutics' company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:

1. Valuation: What is Sarepta Therapeutics worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Sarepta Therapeutics is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Sarepta Therapeutics's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.